T-Mobile US, Inc. (NASDAQ: TMUS) shares rose in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Moffett Nathanson downgraded shares of T-Mobile US, Inc. (NASDAQ: TMUS) from Buy to Neutral in a research note to investors today. With a rating of Neutral on the stock, the company has a 52-week high of $59.46. The one-year price target of $59.26 is above the opening price of $55.72, that has caused a number of other analysts to report on the company in recent days. Downgrades happen when analysts believe that the future prospects for the security have diminished from the original recommendation, often caused by a material and major digression in the company’s actions, future vision or industry.
Shares of T-Mobile US, Inc. (NASDAQ: TMUS) opened at $55.72 yesterday and traded in a range between, $55.30 and $56.86, and last traded at $56.86, which is a spike of $0.19 over the previous closing price.
T-Mobile US, Inc. (NASDAQ: TMUS) currently has a market cap of 46.85B.
T-Mobile US, Inc. (NASDAQ: TMUS) Average Daily Trading Volume
458,648 shares crossed the trading desk yesterday, 104 percent lower than the norm, out of a total float 287,218,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
T-Mobile US, Inc. (NASDAQ: TMUS) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for T-Mobile US, Inc. (NASDAQ: TMUS) have ranged from $33.23 – 59.46, and the stock now has a 50-day MA of $56.52 and 200-day MA of $48.97. Today’s last price is 4.37%% under the 52 week high of $59.46.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have grown their earnings by at least 25% for the past 3 years.
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